1.) This budget which
extends through June 30, 2015 is still projected to end with a healthy cash
balance. The rainy day fund is at an all time high. The
"structural deficit" is a state government concept and some states do
not even calculate, or calculate using different methods. In this state,
LFB assume there are no growths in revenues or expenditures all the way through
June 30, 2017.

Revenues tend to grow, and Walker's team has proven
they can manage the expense side of the budget. Many folks (and even
legislators) do not understand that we do not tell the Governor (executive
branch) what they have to spend - we tell them the maximum they can spend.
This means the Governor's team can find cost savings, and simply spend
less than the maximum amounts the legislature stipulated. There are substantial
areas expenses can be cut with a $30 Billion plus annual budget. If you
look at the audited state financial statements - the general fund had less
spending in 2012 than 2011, and the 2013 general funding spending was lower
than 2012 and 2011 even though the legislative budget was an increase in GPR
spending.

2.) The structural
deficit is projecting revenue all the way to June 30, 2017 - a lot will happen
between now and then - including the passage of a new budget. No company
would forecast a budget 3 years out and not assume any changes in revenues or
expenses.

3.) Some of the
confusion, and forward projections, are affected by the fact we are returning a
portion of the surplus to the taxpayers who put it there in the first place.
In the private sector, we would call this a return of equity - not an
expense or lost revenue! For example, if GE is predicting a year with
zero net income, but still pays out $1 billion in dividends because they have
excessive cash, their net income does not become a net loss of $1 billion,
their income remains flat. In Madison,
the stakeholders do not view it that way, and they call a return of taxpayer
dividends an expense. This is an important distinction in the private
sector, but not understood in government because it is not in their best
interest.

4.) Wisconsin's businesses and families budgets
are what really matters. Since we cut taxes, and the Governor adjusted the
withholding tables, budgeting has become less burdensome for families and
business. Republicans made a conscious decision to make budgeting easier
at the dinner table and main street - that is what really matters. We all
know the left, assisted by the media, wants to argue against tax cuts because
they want to make it easier to keep your cash in Madison so they can spend it on growing
government.

5.) The revenue
projections going forward are not Wisconsin
specific, they are instead based on national economic trends. There is no
doubt that lack of leadership in the White House has created domestic and
international concerns which have national economic impacts.

6.) Media bias and
ignorance is driving the confusion. I have never seen a Wisconsin
paper headline the federal deficit despite Sen. Ron Johnson's best efforts.
Those deficits are real. Wisconsin
is in good shape. 54% of voters think Wisconsin
is headed in the right direction, compared to 25% of national voters who think
the US
is headed in the right direction.